What type of benefits does Term insurance provide?

Term insurance is specifically designed to provide a death benefit to the beneficiaries of the insured if the insured passes away during the term of the policy. The primary objective of term insurance is to offer financial protection for a specified period, which can range from one year to several decades. If the insured survives the term, the coverage typically ends, and there is no payout or accumulated value.

This means that the main feature of term insurance is its focus solely on the death benefit, rather than any additional features like investment opportunities, living benefits, or cash value accumulation, which are associated with whole or universal life insurance policies. Understanding this core function helps clarify the role of term insurance within the larger landscape of life insurance offerings.